What was the present value of Austin obligation

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Question - On 12-31-18, Austin entered into an agreement that required Austin to pay a supplier $2,000 every year on 12-31 until 2038. The agreement required Austin to make the first annual payment on 12-31-23. Assume the market rate of interest for Austin is 5%. As of 12-31-18 what was the present value of Austin's obligation?

Reference no: EM132711962

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